Minnesota HealthSolutions (MHS) in conjunction with the Mayo Clinic and Limbix proposes to develop a low- cost, virtual reality system that provides realistic and responsive exposures for childhood anxiety disorders (CAD) and obsessive compulsive disorders (OCD). Anxiety disorders are one of the most common childhood mental health diagnoses, yet as many as 70% of youth receive little or no treatment. Cognitive Behavioral Therapy (CBT) is well supported by the research as an effective treatment for anxiety disorders. A key component to successful CBT for treating anxiety disorders is the inclusion of fear provoking exposures. Virtual reality exposure therapy (VRET) has demonstrated efficacy and acceptability in the treatment of several anxiety disorders, including specific phobias, social anxiety disorder, panic disorder and agoraphobia, post- traumatic stress disorder, and obsessive-compulsive disorder and has been used effectively with children. VR creates an immersive, multimedia experience that is three-dimensional. In the past, the cost of systems has put them out of the price range of most therapists and has made them available only as in-office tool. It is hypothesized that more patients with anxiety disorders will receive effective treatment by the development of a low-cost, VR system to provide exposure therapy.